Driving Public Entrepreneurship

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Contents Europe’s new Innovation Imperative 2 Focusing the Power of Government 3 Transforming Government, Achieving Growth 5 The New Waves of Growth 7 The Silver Economy 9 The Resource Economy 13 The Multi-Technology Future 17 The Emerging Markets Surge 21 Making it Happen 25 About us 27 References 29 This report reflects recent research undertaken by Accenture and Oxford Economics and is presented in collaboration with the Government of the Future Centre, a leading research centre and innovation hub that aims to shape high-performing and innovative public service organisations. The Government of the Future Centre was established by Accenture, the Lisbon Council and the College of Europe to support public service organisations with groundbreaking research and insights that help to improve the social, economic and health outcomes of the people they serve. 1
Europe’s new Innovation Imperative Innovation is fundamental to high-performing governments and businesses—offering the potential to achieve better social outcomes for citizens, and to fulfil the promise of sustained economic recovery. As Europe struggles to emerge from the worst economic crisis since the Great Depression, policymakers are looking to innovation to catapult economies into the new 'S-curve' of global growth. This report shows where progress is being made, and gives practical solutions for a new breed of public entrepreneurs who must innovate to address social challenges and catalyse growth. Recent research by Accenture and Oxford Economics 1 identifies real opportunities for accelerated economic growth and job creation in both developed and emerging economies. Undertaking further detailed macroeconomic modelling for this report, we estimate that as many as 15 million jobs can be created and sustained in Europe in the next decade. But these opportunities are by no means guaranteed. To turn economic potential into tangible growth and improved social outcomes for citizens, government and public service leaders at all levels will need to take consolidated, focused action. Traditionally, the role of government has been recognised as an enabling one—creating space for entrepreneurs to turn ideas into market opportunities, establishing a positive environment for investment, and designing policies and programs that stimulate private sector growth. Yet as the fiscal slowdown continues to dampen recovery and squeeze already tight public budgets, governments must go beyond enablement. Governments need to: • reconsider how austerity can drive transformation and renewal • ask how new forms of collaboration between government, businesses and citizens can challenge the status quo • find new ways to seek out the mutually reinforcing goals of social progress and economic prosperity • explore how promoting a culture of public entrepreneurship can drive innovation across government and help create sustainable growth. Our research tells us that policymakers and public service managers already recognise they must help drive recovery by reforming the way they work. Many public service leaders are reshaping services to accommodate reduced budgets. Some are beginning to embrace innovation as a means of driving public value. Too few are actively considering how they themselves can be the leaders that inspire economic growth, by radically adjusting the way they work around new, collaborative business models. These actions are what we mean by public entrepreneurship 2 ; using the whole range of policy levers to mobilise a broad resource base, catalyse innovation and drive the twin goals of social progress and economic growth. An ageing population, increasing social demand, new technologies and a changing, multi-polar world are all reshaping the landscape, and forcing a rethink of traditional roles and ways of working. • How can public service leaders balance tight budgets and continue to deliver public value with fewer resources? • How can they mobilise the co-productive strength of businesses and citizens to drive social and economic wellbeing? • How can governments and public service agencies, as key players in this process, focus efforts and use their combined strength to catalyse innovation and growth? Building on research by Accenture and Oxford Economics, this report uses macroeconomic analysis, case studies and a broad range of interviews with policymakers, academics and public managers to offer answers to these questions. “For the first time in generations there is an active platform for change. The general model of social security has essentially been the same for the last 60 years. But the world we live in today is vastly different. We need to stop and think about whether the system we have today is appropriate to respond to the changing needs of citizens and employers.” Terry Moran, Director General, Universal Credit Programme, Department for Work and Pensions, United Kingdom (UK) 2
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Page 5 and 6: Governments have a range of levers
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